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Despite Bitcoin’s Market Rally, Seasoned Trader Loses Excitement in Crypto Trading
- Despite Bitcoin’s recovery, trader Peter To finds its reduced volatility diminishes the market’s appeal for profit-seeking inefficiency hunters.
- BlackRock CEO Larry Fink has endorsed cryptocurrencies as a promising asset class for investors.
- He suggests they offer a ‘flight to quality’ amidst global uncertainties while the crypto community eagerly awaits a BlackRock Bitcoin ETF.
Bitcoin Lost Its Allure
Bitcoin (BTC) has seen a significant recovery, doubling in value since the start of 2023. However, a professional stock trader from New York, Peter To, finds that this rebound isn’t compelling enough to draw him back into the market. To told Bloomberg that Bitcoin no longer exhibits the extreme volatility or momentum it once did, rendering the market less appealing for those who seek to profit from its inefficiencies.
Bitcoin is not as volatile or as driven as it was. For traders like me who are hunting for inefficiencies in the market, it’s not as interesting. The allure is kind of gone.
Peter To
BlackRock Driving Bullish Narrative
Meanwhile, Larry Fink, the CEO of BlackRock, has reaffirmed his positive stance on cryptocurrencies, seeing them as a burgeoning asset class for global investors. During a FOX Business interview, he likened cryptocurrencies to a ‘flight to quality’, suggesting they could serve as a reliable investment amid market uncertainty.
Fink dismissed the idea that the recent surge in Bitcoin’s price was merely a reaction to false reports about BlackRock’s supposed approval to launch a Bitcoin exchange-traded fund (ETF). He attributed the rally to investors seeking quality assets in the face of global concerns like the conflict involving Israel and pervasive global terrorism.
More Maturity, Less Opportunity?
The cryptocurrency community is closely monitoring the potential approval of a BlackRock Bitcoin ETF, anticipating that it could attract US $200 billion (AU 307 billion) in institutional capital into the Bitcoin market. Fink’s shift in perspective regarding cryptocurrencies, highlighted in his interview, signals the growing acceptance and interest from investors in this asset class.
Peter To described a shift in the cryptocurrency market by saying that when New York was asleep, the market used to experience dips in the range of 20-30%. He said back in the beginning, capitalising on these market anomalies was a strategy for profit. Nowadays, he believes the market is more straightforward—if cryptocurrency values rise, you profit, and if they fall, you incur losses. He added, “It’s more directional, which is a different game.”
At the time of writing BTC is up 26.87% month-on-month as CoinMarketCap shows. At the time of writing the number one coin is trading at US $34,969 (AU $53,658).
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
